Carnival Corp. lowers profit forecast for 2013

By Tom Stieghorst
Carnival Corp. has cut its 2013 earnings outlook for the second time, reflecting the fallout from bad publicity surrounding the Carnival Triumph engine-room fire and stranding at sea.

Lower ticket prices since the mid-February incident has pushed booking volume higher but has resulted in lower-than-anticipated net revenue yields.

Carnival now expects yields to fall 2-3% this year; previously it forecast yields flat with 2012.

For all of 2013, Carnival now expects to earn between $1.1 billion and $1.3 billion, down from prior guidance of $1.4 billion to $1.6 billion issued in March.

At the start of the year, Carnival had expected earnings between $1.7 billion and $1.9 billion.

Carnival said that since it last issued guidance it has canceled more cruises. That, along with higher marketing costs, will reduce earnings by an additional $78 million this year.

Carnival earned $1.5 billion last year, when the Costa Concordia sinking hurt its results. In 2011, it earned $1.9 billion.

Follow Tom Stieghorst on Twitter @tstravelweekly.
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